JAL’s Net Profit Soars to ¥85.87 Billion in April-December Period

Japan Airlines Co. announced on Friday a significant increase in its net profit for the nine-month period ending in December, reporting an impressive more than fivefold rise to 85.87 billion yen. This surge is attributed to the robust rebound in travel demand following the COVID-19 pandemic.

Despite a recent incident involving a collision between one of its passenger jets and a Japan Coast Guard aircraft at Tokyo’s Haneda airport, the premier airline is optimistic, maintaining its full-year earnings forecast. The company anticipates a 2.3-fold increase in group net profit to 80 billion yen, with a projected 22.4 percent increase in sales to 1.68 trillion yen. This outlook underscores the minimal financial impact of the Haneda collision, which necessitated the accounting for an operating loss of approximately 15 billion yen due to the loss of a key Airbus A350 aircraft.

For the reported nine months, Japan Airlines witnessed a 24.2 percent increase in sales to 1.25 trillion yen, marking the highest level for this period since its 2012 relisting. This growth is supported by the lifting of coronavirus-related border control measures in April, leading to increased travel demand. The airline saw significant revenue gains across its segments, with international flight business revenues up by 64.3 percent and domestic flight operations increasing by 25.9 percent.

Chief Financial Officer Yuji Saito expressed optimism for sustained growth in both sales and profit into the next fiscal year, particularly highlighting the potential in international flights to Japan. In an effort to attract more customers, Japan Airlines has introduced the Airbus A350-1000, marking the first renewal of its flagship international aircraft fleet in approximately 20 years. This state-of-the-art widebody aircraft commenced operations on the Haneda to New York route last month.

Despite the financial implications of the January 2nd collision at Haneda, which is estimated to impact annual revenue by about 2 billion yen due to flight cancellations and a temporary runway closure, the airline is confident that the strong demand for air travel will mitigate these effects. The incident resulted in all 379 passengers on the JAL jet evacuating safely without life-threatening injuries, though it tragically resulted in the loss of five individuals aboard the coast guard aircraft.

This announcement comes in the wake of rival ANA Holdings Inc. reporting encouraging earnings, with an updated net profit forecast for the year ending in March to 130 billion yen, up from a previous estimate of 80 billion yen, buoyed by better-than-expected travel demand.